First Community Corp 10-Q for FY2024 Q2

First Community Corp (FCCO)

10-Q 2024-08-12 For: 2024-06-30

Added on April 07, 2026

About this 10-Q

First Community Corp filed this 10-Q on August 12, 2024, covering the quarter ended June 30, 2024 (FY2024 Q2).

Headline figures

Quarter ended June 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $235K; up 6.8% from $220K a year earlier
Net income: $3.27M; down 1.9% from net income of $3.33M a year earlier
Diluted EPS: $0.42; down 2.3% from $0.43 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2024

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____ to ____

FIRST COMMUNITY CORPORATION
(Exact name of registrant as specified in its charter)

South Carolina	57-1010751
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common stock, par value $1.00 per share	FCCO	The Nasdaq Capital Market

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated Filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

PART I – FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Changes in Shareholders’ Equity	5
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	60
Item 4.	Controls and Procedures	60

PART II – OTHER INFORMATION		61
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62

SIGNATURES		63

	June 30,
(Dollars in thousands, except par values)	2024			December 31,
	(Unaudited)			2023
ASSETS
Cash and due from banks	$	25,339		$	27,908
Interest-bearing bank balances		86,172			66,787
Investment securities available-for-sale		269,918			282,226
Investment securities held-to-maturity, fair value of $199,435 and $205,518 at June 30, 2024 and December 31, 2023, respectively, net of allowance for credit losses — investments		213,679			217,170
Other investments, at cost		5,029			6,800
Loans held-for-sale		6,701			4,433
Loans held-for-investment		1,189,189			1,134,019
Less, allowance for credit losses – loans		12,932			12,267
Net loans held-for-investment		1,176,257			1,121,752
Property and equipment – net		30,340			30,589
Lease right-of-use asset		3,095			3,248
Bank owned life insurance		30,567			30,174
Other real estate owned		544			622
Intangible assets		525			604
Goodwill		14,637			14,637
Other assets		22,041			20,738
Total assets	$	1,884,844		$	1,827,688
LIABILITIES
Deposits:
Non-interest bearing	$	460,391		$	432,333
Interest bearing		1,144,137			1,078,668
Total deposits		1,604,528			1,511,001
Securities sold under agreements to repurchase		59,286			62,863
Federal Home Loan Bank advances		50,000			90,000
Junior subordinated debt		14,964			14,964
Lease liability		3,287			3,426
Other liabilities		16,600			14,375
Total liabilities		1,748,665			1,696,629
SHAREHOLDERS’ EQUITY
Preferred stock, par value $1.00 per share, 10,000,000 shares authorized; none issued and outstanding		—			—
Common stock, par value $1.00 per share; 20,000,000 shares authorized; issued and outstanding 7,635,145 at June 30, 2024 and 7,606,172 at December 31, 2023		7,635			7,606
Nonvested restricted stock and stock units		2,156			2,181
Additional paid in capital		93,647			93,167
Retained earnings		60,029			56,296
Accumulated other comprehensive loss		(27,288	)		(28,191	)
Total shareholders’ equity		136,179			131,059
Total liabilities and shareholders’ equity	$	1,884,844		$	1,827,688


(Dollars in thousands, except per share amounts)	Three Months ended June 30,
	2024		2023
Interest and dividend income:
Loans, including fees	$	16,401	$	12,314
Investment securities – taxable		4,114		4,223
Investment securities – non taxable		359		368
Other short term investments and CDs		1,057		592
Total interest income		21,931		17,497
Interest expense:
Deposits		7,720		3,392
Securities sold under agreement to repurchase		497		363
Other borrowed money		1,020		1,605
Total interest expense		9,237		5,360
Net interest income		12,694		12,137
Provision for credit losses		454		186
Net interest income after provision for credit losses		12,240		11,951
Non-interest income:
Deposit service charges		235		220
Mortgage banking income		659		371
Investment advisory fees and non-deposit commissions		1,508		1,081
Gain on sale of other assets		—		105
Other		1,240		1,274
Total non-interest income		3,642		3,051
Non-interest expense:
Salaries and employee benefits		7,303		6,508
Occupancy		738		813
Equipment		317		377
Marketing and public relations		258		370
FDIC Insurance assessments		302		221
Other real estate expense, net		90		(30	)
Amortization of intangibles		39		40
Other		2,796		2,456
Total non-interest expense		11,843		10,755
Net income before tax		4,039		4,247
Income tax expense		774		920
Net income	$	3,265	$	3,327

Basic earnings per common share	$	0.43	$	0.44
Diluted earnings per common share	$	0.42	$	0.43


(Dollars in thousands, except per share amounts)	Six Months ended June 30,
	2024		2023
Interest and dividend income:
Loans, including fees	$	31,951	$	23,473
Investment securities – taxable		8,303		8,284
Investment securities - non taxable		716		743
Other short term investments and CD’s		2,217		887
Total interest income		43,187		33,387
Interest expense:
Deposits		14,923		5,385
Securities sold under agreement to repurchase		1,106		719
Other borrowed money		2,387		2,789
Total interest expense		18,416		8,893
Net interest income		24,771		24,494
Provision for credit losses		583		256
Net interest income after provision for credit losses		24,188		24,238
Non-interest income:
Deposit service charges		494		452
Mortgage banking income		1,084		526
Investment advisory fees and non-deposit commissions		2,866		2,148
Gain on sale of other real estate owned		—		105
Other		2,382		2,395
Total non-interest income		6,826		5,626
Non-interest expense:
Salaries and employee benefits		14,404		12,839
Occupancy		1,528		1,643
Equipment		647		713
Marketing and public relations		824		716
FDIC Insurance assessments		580		403
Other real estate expense		102		(163	)
Amortization of intangibles		78		79
Other		5,485		4,961
Total non-interest expense		23,648		21,191
Net income before tax		7,366		8,673
Income tax expense		1,504		1,883
Net income	$	5,862	$	6,790

Basic earnings per common share	$	0.77	$	0.90
Diluted earnings per common share	$	0.76	$	0.89


	Three months ended June 30,
(Dollars in thousands)	2024			2023
Net income	$	3,265		$	3,327
Other comprehensive income (loss):
Unrealized loss during the period on available-for-sale securities, net of tax expense of $139 and tax benefit of $622, respectively		(184	)		(2,340	)
Reclassification adjustment for amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity, net of tax expense of $89 and $86, respectively.		338			325
Other comprehensive income (loss)		154			(2,015	)
Comprehensive income	$	3,419		$	1,312

																Accumulated
	Common						Additional			Nonvested						Other
(Dollars in thousands)	Shares			Common			Paid-in			Restricted			Retained			Comprehensive
	Issued			Stock			Capital			Stock			Earnings			Loss			Total
Balance, December 31, 2023		7,606		$	7,606		$	93,167		$	2,181		$	56,296		$	(28,191	)	$	131,059
Net income		—			—			—			—			5,862			—			5,862
Other comprehensive income net of tax expense of $271		—			—			—			—			—			903			903
Issuance of common stock-share based compensation		9			9			160			(273	)		—			—			(104	)
Issuance of restricted stock		14			14			232			(246	)		—			—			—
Grant restricted stock units		—			—			—			99			—			—			99
Amortization of compensation on restricted stock		—			—			—			395			—			—			395
Shares forfeited		(6	)		(6	)		(103	)		—			—			—			(109	)
Dividends: Common ($0.28 per share)		—			—			—			—			(2,129	)		—			(2,129	)
Dividend reinvestment plan		12			12			191			—			—			—			203
Balance, June 30, 2024		7,635		$	7,635		$	93,647		$	2,156		$	60,029		$	(27,288	)	$	136,179

Balance, December 31, 2022		7,578		$	7,578		$	92,683		$	1,461		$	49,025		$	(32,386	)	$	118,361
Net income		—			—			—			—			6,790			—			6,790
Adoption of new accounting standard-CECL net of tax of $90		—			—			—			—			(337	)		—			(337	)
Other comprehensive income net of tax expense of $239		—			—			—			—			—			898			898
Issuance of common stock-share based compensation		2			2			39			(69	)		—			—			(28	)
Issuance of restricted stock		8			8			146			(154	)		—			—			—
Grant restricted stock units		—			—			—			109			—			—			109
Amortization of compensation on restricted stock		—			—			—			370			—			—			370
Shares forfeited		(6	)		(6	)		(105	)		—			—			—			(111	)
Dividends: Common ($0.28 per share)		—			—			—			—			(2,116	)		—			(2,116	)
Dividend reinvestment plan		12			12			200			—			—			—			212
Balance, June 30, 2023		7,594		$	7,594		$	92,963		$	1,717		$	53,362		$	(31,488	)	$	124,148


	Six months ended June 30,
(Dollars in thousands)	2024			2023
Cash flows from operating activities:
Net income	$	5,862		$	6,790
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		865			868
Net premium amortization on investment securities available-for-sale		(1,727	)		(1,115	)
Net premium amortization on investment securities held-to-maturity		(311	)		(275	)
Provision for credit losses		583			256
Writedowns of other real estate owned		78			—
Origination of loans held-for-sale		(22,689	)		(18,174	)
Sale of loans held-for-sale		21,494			15,758
Gain on sale of loans held-for-sale		(1,073	)		(105	)
Gain on sale of other real estate owned		—			(105	)
Amortization of intangibles		78			79
Accretion on acquired loans		—			(40	)
(Gain) loss on fair value of equity securities		(20	)		1
Increase in other assets		(926	)		(3,437	)
Increase in other liabilities		2,196			89
Net cash provided by (used in) operating activities		4,410			695
Cash flows from investing activities:
Purchase of investment securities available-for-sale		—			(6,025	)
Purchase of other investment securities		—			(2,017	)
Maturity/call of investment securities available-for-sale		14,321			11,081
Maturity/call of investment securities held-to-maturity		3,802			7,547
Proceeds from sale of other investment securities		1,791			—
Increase in loans		(55,197	)		(51,267	)
Proceeds from sale of other real estate owned		—			112
Purchase of property and equipment		(621	)		(711	)
Net disposals of property and equipment		5			—
Net cash used in investing activities		(35,899	)		(41,280	)
Cash flows from financing activities:
Increase in deposit accounts		93,527			35,371
(Increase) decrease in securities sold under agreements to repurchase		(3,577	)		3,360
Decrease in Fed Funds Borrowed		—			(22,000	)
Advances from the Federal Home Loan Bank		—			229,000
Repayment of advances from the Federal Home Loan Bank		(40,000	)		(184,000	)
Shares retired / forfeited		(109	)		(111	)
Dividends paid: Common Stock		(2,129	)		(2,116	)
Restricted Stock Units Granted		99			109
Cost of issuance of common stock-deferred compensation		(104	)		(28	)
Change in non-vested restricted stock		395			370
Dividend reinvestment plan		203			212
Net cash provided by financing activities		48,305			60,167
Net increase in cash and cash equivalents		16,816			19,582
Cash and cash equivalents at beginning of period		94,695			37,401
Cash and cash equivalents at end of period	$	111,511		$	56,983
Supplemental disclosure:
Cash paid (received) during the period for:
Interest	$	12,977		$	7,902
Income taxes	$	1,849		$	2,534
Non-cash investing and financing activities:
Unrealized gain on available-for-sale securities, net of tax	$	224		$	252
Amortization of unrealized losses on securities from transfer of available-for-sale securities to held-to-maturity, net of tax		679			646
Recognition of operating lease liability		—			825


	Six months				Three months
	Ended June 30,				Ended June 30,
(In thousands except average market price and per share data)	2024		2023		2024		2023
Numerator (Net income available to common shareholders)	$	5,862	$	6,790	$	3,265	$	3,327
Denominator
Weighted average common shares outstanding for:
Basic shares		7,608		7,560		7,617		7,565
Dilutive securities:
Deferred compensation		77		89		78		90
Diluted common shares outstanding		7,685		7,649		7,695		7,655
Earnings per common share:
Basic		0.77		0.90		0.43		0.44
Diluted		0.76		0.89		0.42		0.43
The average market price used in calculating assumed number of shares	$	17.21	$	19.36	$	16.66	$	18.37

			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
June 30, 2024
US Treasury securities	$	15,808	$	—	$	(2,695	)	$	13,113
Government Sponsored Enterprises		2,500		—		(382	)		2,118
Mortgage-backed securities		249,999		21		(16,775	)		233,245
Small Business Administration pools		14,261		27		(448	)		13,840
Corporate and other securities		8,757		—		(1,155	)		7,602
Total	$	291,325	$	48	$	(21,455	)	$	269,918

			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses			Fair Value
December 31, 2023
US Treasury securities	$	20,791	$	—	$	(2,445	)	$	18,346
Government Sponsored Enterprises		2,500		—		(371	)		2,129
Mortgage-backed securities		255,757		15		(17,613	)		238,159
Small Business Administration pools		16,108		24		(411	)		15,721
Corporate and other securities		8,759		—		(888	)		7,871
Total	$	303,915	$	39	$	(21,728	)	$	282,226


June 30, 2024	Less than 12 months				12 months or more				Total
Available-for-sale securities:	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
US Treasury Securities	$	—	$	—	$	13,113	$	2,695	$	13,113	$	2,695
Government Sponsored Enterprise		—		—		2,118		382		2,118		382
Mortgage-backed securities		4,926		192		222,759		16,583		227,685		16,775
Small Business Administration pools		3,497		74		6,188		374		9,685		448
Corporate and other securities		1,495		263		6,103		892		7,598		1,155
Total	$	9,918	$	530	$	250,281	$	20,925	$	260,199	$	21,455

	Three Months
	Ended
(Dollars in thousands)	June 30, 2024
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, March 31, 2024	$	(29	)
Recovery of (provision) for credit losses		2
Ending balance, June 30, 2024	$	(27	)

	Three Months
	Ended
(Dollars in thousands)	June 30, 2023
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, March 31, 2023	$	(42	)
Recovery of (provision) for credit losses		5
Ending balance, June 30, 2023	$	(37	)

	Six Months
	Ended
(Dollars in thousands)	June 30, 2024
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, December 31, 2023	$	(30	)
Recovery of (provision) for credit losses		3
Ending balance, June 30, 2024	$	(27	)

	Six Months
	Ended
(Dollars in thousands)	June 30, 2023
Allowance for Credit Losses on Held-to-Maturity Securities:
State and local government
Beginning balance, December 31, 2022	$	—
Adjustment for adoption of ASC 326		(43	)
Recovery of (provision) for credit losses		6
Ending balance, June 30, 2023	$	(37	)

	June 30,		December 31,
(Dollars in thousands)	2024		2023
Commercial	$	83,075	$	78,134
Real estate:
Construction		141,709		118,225
Mortgage-residential		113,862		94,796
Mortgage-commercial		797,573		791,947
Consumer:
Home equity		37,274		34,752
Other		15,696		16,165
Total loans, net of deferred loan fees and costs	$	1,189,189	$	1,134,019

($ in thousands)	Commercial			Real Estate Construction		Real Estate Mortgage Residential		Real Estate Mortgage Commercial			Consumer Home Equity		Consumer Other			Total Loans
Balance at March 31, 2024	$	941		$	1,583	$	1,194	$	8,021		$	454	$	266		$	12,459
Charge-offs		(5	)		—		—		(2	)		—		(10	)		(17	)
Recoveries		1			1		—		4			2		4			12
Provision for credit losses		89			35		184		123			48		(1	)		478
Balance at June 30, 2024	$	1,026		$	1,619	$	1,378	$	8,146		$	504	$	259		$	12,932

($ in thousands)	Commercial			Real Estate Construction		Real Estate Mortgage Residential		Real Estate Mortgage Commercial			Consumer Home Equity		Consumer Other			Total Loans
Balance at December 31, 2023	$	935		$	1,337	$	1,122	$	8,146		$	472	$	255		$	12,267
Charge-offs		(29	)		—		—		(2	)		—		(36	)		(67	)
Recoveries		2			1		18		7			5		6			39
Provision for credit losses		118			281		238		(5	)		27		34			693
Balance at June 30, 2024	$	1,026		$	1,619	$	1,378	$	8,146		$	504	$	259		$	12,932

($ in thousands)	Commercial		Real estate Construction		Real estate Mortgage Residential		Real estate Mortgage Commercial			Consumer Home equity		Consumer Other			Total
Balance at March 31, 2023	$	996	$	1,080	$	790	$	7,927		$	424	$	203		$	11,336
Charge-offs		—		—		—		—			—		(27	)		(27	)
Recoveries		1		1		3		6			4		2			17
Provisions		15		46		68		(47	)		10		52			144
Ending balance June 30, 2023	$	1,012	$	1,127	$	861	$	7,886		$	438	$	230		$	11,554

	As of			As of
(Dollars in thousands)	June 30, 2024			December 31, 2023
Rating:
Aaa	$	154,833		$	156,749
Aa1/Aa2/Aa3		53,814			55,388
A1/A2		5,059			5,063
Allowance for Credit Losses on Held-to-Maturity Securities		(27	)		(30	)
Total	$	213,679		$	217,170

	Available-for-sale
June 30, 2024	Amortized			Fair
(Dollars in thousands)	Cost			Value
Due in one year or less	$	2		$	2
Due after one year through five years		9,716			9,323
Due after five years through ten years		37,597			33,057
Due after ten years		244,010			227,536
Total	$	291,325		$	269,918

	Held-To-Maturity
June 30, 2024	Amortized			Fair
(Dollars in thousands)	Cost			Value
Due in one year or less	$	2,789		$	2,754
Due after one year through five years		53,438			50,924
Due after five years through ten years		62,039			58,875
Due after ten years		95,440			86,909
Allowance for Credit Losses on Held-to-Maturity Securities		(27	)		(27	)
Total	$	213,679		$	199,435


	Term Loans by year of Origination
($ in thousands)	2020		2021		2022		2023		2024		Prior		Revolving		Revolving Converted to Term		Total
Commercial
Pass	$	1,129	$	21,082	$	7,562	$	9,223	$	11,207	$	8,974	$	23,803	$	41	$	83,021
Special mention		—		—		—		—		—		—		—		—		—
Substandard		—		54		—		—		—		—		—		—		54
Total commercial		1,129		21,136		7,562		9,223		11,207		8,974		23,803		41		83,075

Current period gross write-offs		—		24		—		—		—		5		—		—		29
Real estate construction
Pass		—		4,937		40,299		53,713		9,966		6,294		26,500		—		141,709
Total real estate construction		—		4,937		40,299		53,713		9,966		6,294		26,500		—		141,709

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-residential
Pass		10,071		5,645		33,097		31,504		9,051		8,911		867		14,111		113,257
Special mention		221		—		—		—		—		172		—		—		393
Substandard		—		—		—		—		—		212		—		—		212
Total real estate mortgage-residential		10,292		5,645		33,089		31,504		9,065		9,289		867		14,111		113,862

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-commercial
Pass		91,374		128,334		197,155		119,531		27,704		216,008		17,005		98		797,209
Special mention		—		—		—		—		—		157		—		—		157
Substandard		—		117		—		—		—		90		—		—		207
Total real estate mortgage-commercial		91,374		128,450		197,155		119,531		27,705		216,255		17,005		98		797,573

Current period gross write-offs		—		2		—		—		—		—		—		—		2

Consumer - home equity
Pass		—		—		—		—		—		—		36,104		—		36,104
Special mention		—		—		—		—		—		—		109		—		109
Substandard		—		—		—		—		—		—		1,061		—		1,061
Total consumer - home equity		—		—		—		—		—		—		37,274		—		37,274

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - other
Pass		148		327		832		1,570		1,735		1,253		9,814		—		15,679
Special mention		—		—		—		17		—		—		—		—		17
Substandard		—		—		—		—		—		—		—		—		—
Total consumer - other		148		327		832		1,587		1,735		1,253		9,814		—		15,696

Current period gross write-offs		—		—		—		—		—		—		36		—		36


	Term Loans by year of Origination
($ in thousands)	2019		2020		2021		2022		2023		Prior		Revolving		Revolving Converted to Term		Total
Commercial
Pass	$	1,149	$	1,375	$	23,226	$	9,018	$	12,950	$	9,230	$	21,033	$	49	$	78,030
Special mention		—		—		—		—		—		26		—		—		26
Substandard		—		—		78		—		—		—		—		—		78
Total commercial		1,149		1,375		23,304		9,018		12,950		9,256		21,033		49		78,134

Current period gross write-offs		—		20		—		—		—		—		—		—		20
Real estate construction
Pass		6,864		—		5,074		39,514		47,992		—		18,781		—		118,225
Total real estate construction		6,864		—		5,074		39,514		47,992		—		18,781		—		118,225

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-residential
Pass		1,894		10,548		6,219		28,843		28,517		8,420		977		8,962		94,380
Special mention		—		25		—		—		—		177		—		—		202
Substandard		—		—		—		—		—		214		—		—		214
Total real estate mortgage-residential		1,894		10,573		6,219		28,843		28,517		8,811		977		8,962		94,796

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Real estate mortgage-commercial
Pass		47,962		95,120		136,892		201,380		106,125		189,983		14,038		329		791,829
Special mention		—		—		—		—		—		21		—		—		21
Substandard		—		—		—		—		—		97		—		—		97
Total real estate mortgage-commercial		47,962		95,120		136,892		201,380		106,125		190,101		14,038		329		791,947

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - home equity
Pass		—		—		—		—		—		—		33,621		—		33,621
Special mention		—		—		—		—		—		—		67		—		67
Substandard		—		—		—		—		—		—		1,064		—		1,064
Total consumer - home equity		—		—		—		—		—		—		34,752		—		34,752

Current period gross write-offs		—		—		—		—		—		—		—		—		—

Consumer - other
Pass		420		203		435		1,164		2,043		902		10,982		—		16,149
Special mention		—		—		—		—		16		—		—		—		16
Substandard		—		—		—		—		—		—		—		—		—
Total consumer - other		420		203		435		1,164		2,059		902		10,982		—		16,165

Current period gross write-offs		—		—		—		—		—		—		67		—		67

	June 30, 2023
(Dollars in thousands)	Amortized cost basis		% of Total Loan Type			Financial effect
Real Estate Mortgage Residential		201		0.27	%		Deferred two monthly payments that are added to the end of the original loan term.
Total Loans	$	201	$	0.27	%

					Greater than
(Dollars in thousands)	30-59 Days		60-89 Days		90 Days and				Total
June 30, 2024	Past Due		Past Due		Accruing		Non-accrual		Past Due		Current		Total Loans
Commercial	$	23	$	4	$	—	$	53	$	80	$	82,995	$	83,075
Real estate:
Construction		—		—		—		—		—		141,709		141,709
Mortgage-residential		—		237		—		—		237		113,625		113,862
Mortgage-commercial		—		21		—		117		138		797,435		797,573
Consumer:
Home equity		503		—		—		3		506		36,768		37,274
Other		65		—		—		—		65		15,631		15,696
Total	$	591	$	262	$	—	$	173	$	1,026	$	1,188,163	$	1,189,189

					Greater than
(Dollars in thousands)	30-59 Days		60-89 Days		90 Days and				Total
December 31, 2023	Past Due		Past Due		Accruing		Non-accrual		Past Due		Current		Total Loans
Commercial	$	19	$	7	$	—	$	24	$	50	$	78,084	$	78,134
Real estate:
Construction		—		—		—		—		—		118,225		118,225
Mortgage-residential		244		15		214		—		473		94,323		94,796
Mortgage-commercial		67		124		—		—		191		791,756		791,947
Consumer:
Home equity		—		—		—		3		3		34,749		34,752
Other		22		—		1		—		23		16,142		16,165
Total	$	352	$	146	$	215	$	27	$	740	$	1,133,279	$	1,134,019


	CECL
	June 30, 2024
(Dollars in thousands)	Non-accrual Loans with No Allowance		Non-accrual Loans with an Allowance		Total Non-accrual Loans
Commercial	$	—	$	53	$	53
Real estate:
Construction		—		—		—
Mortgage-residential		—		—		—
Mortgage-commercial		—		117		117
Consumer:
Home equity		—		3		3
Other		—		—		—
Total	$	—	$	173	$	173

(Dollars in thousands)	Total Allowance for Credit Losses - Unfunded Commitments
Balance, March 31, 2024	$	512
Provision for unfunded commitments		(22	)
Balance, June 30, 2024	$	490

(Dollars in thousands)	Total Allowance for Credit Losses - Unfunded Commitments
Balance, March 31, 2023	$	382
Provision for unfunded commitments		47
Balance, June 30, 2023	$	429

Level l	Quoted prices in active markets for identical assets or liabilities.
Level 2	Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.


	June 30, 2024
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and short term investments	$	111,511	$	111,511	$	111,511	$	—	$	—
Available-for-sale securities		269,918		269,918		—		269,918		—
Held-to-maturity securities		213,679		199,435		—		199,435		—
Other investments, at cost		5,029		5,029		—		—		5,029
Loans held for sale		6,701		6,701		—		6,701		—
Derivative financial instruments		2,592		2,592		—		2,592		—
Net loans receivable		1,176,257		1,114,977		—		—		1,114,977
Accrued interest receivable		5,901		5,901		5,901		—		—
Financial liabilities:
Non-interest bearing demand	$	460,391	$	460,391	$	—	$	460,391	$	—
Interest bearing demand deposits and money market accounts		719,158		719,158		—		719,158		—
Savings		111,273		111,273		—		111,273		—
Time deposits		313,706		306,695		—		306,695		—
Total deposits		1,604,528		1,597,517		—		1,597,517		—
Federal Home Loan Bank Advances		50,000		50,000		—		50,000		—
Short term borrowings		59,286		59,286		—		59,286		—
Junior subordinated debentures		14,964		13,042		—		13,042		—
Accrued interest payable		5,958		5,958		5,958		—		—


(Dollars in thousands)	June 30, 2024
Description	Total		Level 1		Level 2		Level 3
Available- for-sale securities
US Treasury Securities	$	13,113	$	—	$	13,113	$	—
Government Sponsored Enterprises		2,118		—		2,118		—
Mortgage-backed securities		233,245		—		233,245		—
Small Business Administration pools		13,840		—		13,840		—
Corporate and other securities		7,602		—		7,602		—
Total Available-for-sale securities		269,918		—		269,918		—
Derivative financial instruments		2,592				2,592
Loans held for sale		6,701		—		6,701		—
Total	$	279,211	$	—	$	279,211	$	—

(Dollars in thousands)	Fair Value as of June 30, 2024		Valuation Technique	Significant Observable Inputs	Significant Unobservable Inputs
OREO	$	544	Appraisal Value/Comparison Sales/Other estimates	Appraisals and or sales of comparable properties	Appraisals discounted 6% to 16% for sales commissions and other holding cost

(Dollars in thousands)	Fair Value as of December 31, 2023		Valuation Technique	Significant Observable Inputs	Significant Unobservable Inputs
OREO	$	622	Appraisal Value/Comparison Sales/Other estimates	Appraisals and or sales of comparable properties	Appraisals discounted 6% to 16% for sales commissions and other holding cost

	·	Mortgage Banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market, consumer mortgage loans that will be held-for-investment, and consumer residential construction loans. The Company allocates a provision for credit loss, cost of funds, and other operating costs to this segment.
	·	Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products.
	·	Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from the Bank.

(Dollars in thousands)	Commercial				Investment
Three months ended June 30, 2024	and Retail		Mortgage		advisory and
	Banking		Banking		non-deposit		Corporate			Eliminations			Consolidated
Dividend and Interest Income	$	20,259	$	1,663	$	—	$	1,376		$	(1,367	)	$	21,931
Interest expense		8,298		631		—		308			—			9,237
Net interest income	$	11,961	$	1,032	$	—	$	1,068		$	(1,367	)	$	12,694
Provision for credit losses		329		125		—		—			—			454
Noninterest income		1,477		657		1,508		—			—			3,642
Noninterest expense		9,460		972		1,014		397			—			11,843
Net income before taxes	$	3,649	$	592	$	494	$	671		$	(1,367	)	$	4,039
Income tax provision (benefit)		919		—		—		(145	)		—			774
Net income	$	2,730	$	592	$	494	$	816		$	(1,367	)	$	3,265

(Dollars in thousands)	June 30, 2024			December 31, 2023
Right-of-use assets	$	3,095		$	3,248
Lease liabilities	$	3,287		$	3,426
Weighted average remaining lease term		11.36 years			11.70 years
Weighted average discount rate		4.30	%		4.29	%

(Dollars in thousands)
Year	Operating Leases
2024	$	213
2025		434
2026		444
2027		422
2028		364
Thereafter		2,344
Total undiscounted lease payments	$	4,221
Less effect of discounting		(934	)
Present value of estimated lease payments (lease liability)	$	3,287

(Dollars in thousands)	Securities Available for Sale			Securities Held to Maturity			Accumulated Other Comprehensive Loss
Balance at December 31, 2023		(17,135	)		(11,056	)		(28,191	)
Other comprehensive loss		224			—			224
Amortization of unrealized loss on securities transferred to held-to-maturity		—			679			679
Net other comprehensive income (loss) during period		224			679			903
Balance at June 30, 2024		(16,911	)		(10,377	)		(27,288	)

	·	changes in monetary and tax policies, including potential changes in tax laws and regulations;
	·	changes in accounting standards, policies, estimates and practices as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the SEC and the Public Company Accounting Oversight Board;

	·	the rate of delinquencies and amounts of loans charged-off;
	·	the rate of loan growth in recent years and the lack of seasoning of a portion of our loan portfolio;